FOMC Keeps Its Powder Dry

Central bank won't rush bond buying to stop rise in yields.

WHILE THE FEDERAL OPEN MARKET COMMITTEE reaffirmed its target rate for overnight federal funds, it pointedly is not looking to peg the yields on long-term Treasury securities.

In its statement following the panel's policy meeting that just ended, the FOMC reaffirmed its plan to purchase up to $1.25 trillion of mortgage-backed securities, $200 billion of agency debt and $300 billion of Treasury securities, which was announced after the committee's previous meeting that concluded on March 18.